Modern Dental Group Limited (3600) AI Stock Analysis

• Market Cap: €5.18B
• Dividend Yield: 3.63%
• Average Volume (3M): 704.15K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.43
• Revenue Growth: 6.87%
• EPS Growth: 18.37%
• Country: HK
• Employees: 7,106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.30
• Shares Outstanding: 934,850,000
• 10 Day Avg. Volume: 687,288
• 30 Day Avg. Volume: 704,147
• PEG Ratio: 4.05
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 10.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$4.50 ▼(-17.88% Downside)

Modern Dental Group's strong financial performance and reasonable valuation are the primary drivers of its stock score. The absence of recent cash flow data is a concern, but the company's solid revenue growth and profitability provide a stable foundation. Technical indicators show moderate strength, supporting a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, suggesting strong demand for Modern Dental's products and services, which supports long-term business sustainability.

Profitability

High profit margins reflect efficient operations and pricing power, which enhance the company's ability to reinvest in growth and withstand competitive pressures.

Balance Sheet Health

A strong equity base and moderate leverage indicate financial stability, providing the company with flexibility to pursue strategic opportunities without excessive risk.

Negative Factors

Cash Flow Reporting

The absence of recent cash flow data raises concerns about liquidity management, which could impact the company's ability to fund operations and growth initiatives.

EBIT Consistency

Inconsistent EBIT performance may indicate volatility in operational efficiency, which could affect profitability and investor confidence over time.

Cash Management Concerns

Uncertainty in cash management could hinder the company's ability to maintain operational efficiency and meet financial obligations, posing a risk to long-term stability.

Modern Dental Group Limited Business Overview & Revenue Model

Company Description

Modern Dental Group Limited, an investment holding company, engages in production and distribution of dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. It operates through three segments: Fixed Prosthetic Devices, Removable Prosthetic Devices, and Others. The Fixed Prosthetic Devices segment offers restorative dental procedures, such as crowns, bridges, and implant. The Removable Prosthetic Devices segment produces full and partial dentures with and without metal frameworks. The Others segment offers orthodontic devices, sports guards, anti-snoring devices, raw materials, and dental equipment. This segment also provides services for educational events and seminars. The company sells its products to dentists, dental clinics, hospitals, distributors, and other customers under the Permadental & Semperdent, Schmidt, Apex Digital Dental, Elysee, Labocast, Modern Dental Laboratory, Yangzhijing, Southern Cross Dental, Andent, Modern Dental USA, Sundance Dental, Quantum Dental, TrioClear, and Digitek Dental brands. Modern Dental Group Limited was founded in 1986 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Modern Dental Group Limited generates revenue through multiple streams, primarily from the sale of dental prosthetics and related products to dental practices and healthcare providers. The company operates a direct sales model, supplying high-quality dental products and equipment, which accounts for a significant portion of its income. Additionally, it earns revenue through laboratory services, offering custom solutions and products tailored to specific client needs. The company may also engage in partnerships with dental clinics and healthcare organizations, enhancing its market reach and facilitating bulk sales. Furthermore, Modern Dental Group benefits from ongoing relationships with suppliers and distributors, which can lead to favorable pricing and increased sales volume, ultimately contributing to its overall earnings.

Modern Dental Group Limited Financial Statement Overview

Summary

Modern Dental Group shows strong financial performance with robust revenue growth and profitability. The income statement is solid, but the absence of recent cash flow data is a concern that needs addressing to ensure liquidity.

Income Statement

Modern Dental Group has demonstrated a strong income statement performance with a consistent increase in total revenue over recent years. The company reported a gross profit margin of approximately 53.5% for the most recent period, and the net profit margin stands at around 12.1%. Both EBIT and EBITDA margins are solid at 15.9% and 19.8%, respectively. The revenue growth rate from 2023 to 2024 was about 6.06%, indicating a positive growth trajectory. Overall, the income statement reflects strong profitability and growth, though there is room for improvement in EBIT consistency.

Balance Sheet

The balance sheet of Modern Dental Group shows a stable financial position with a debt-to-equity ratio of approximately 0.34, indicating moderate leverage. The return on equity (ROE) for the latest period is about 15.0%, which is robust and demonstrates effective management of equity. The equity ratio is a strong 66.7%, highlighting a solid equity base relative to assets. While the company's leverage is under control, continuous monitoring is advised to maintain this stability.

Cash Flow

The cash flow analysis for Modern Dental Group reveals some challenges, particularly with the reporting of operating cash flow and free cash flow being zero for the most recent period. Historically, the company has shown positive free cash flow growth, and the operating cash flow to net income ratio was healthy in previous years. However, the lack of cash flow data for the latest period raises concerns about cash management, which needs addressing to ensure liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.36B	3.17B	2.83B	2.96B	2.19B
Gross Profit	1.89B	1.80B	1.70B	1.38B	1.55B	1.09B
EBITDA	731.58M	719.12M	696.64M	464.09M	627.01M	295.21M
Net Income	478.00M	408.00M	404.10M	220.46M	360.82M	107.76M
Balance Sheet
Total Assets	4.40B	4.07B	3.95B	3.54B	3.66B	3.67B
Cash, Cash Equivalents and Short-Term Investments	595.26M	816.83M	697.69M	447.72M	638.00M	746.71M
Total Debt	768.60M	924.22M	852.20M	788.19M	833.09M	1.03B
Total Liabilities	1.33B	1.35B	1.31B	1.21B	1.30B	1.41B
Stockholders Equity	2.99B	2.72B	2.63B	2.32B	2.35B	2.25B
Cash Flow
Free Cash Flow	487.63M	379.37M	416.04M	53.36M	369.27M	303.87M
Operating Cash Flow	579.73M	521.19M	575.76M	238.72M	510.72M	376.32M
Investing Cash Flow	-298.13M	-145.47M	-154.96M	-227.55M	-142.65M	-47.32M
Financing Cash Flow	-398.21M	-227.70M	-173.64M	-201.79M	-452.12M	-32.95M

Modern Dental Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3600, the sentiment is Positive. The current price of 5.48 is above the 20-day moving average (MA) of 5.16, above the 50-day MA of 5.28, and above the 200-day MA of 4.54, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3600.

Modern Dental Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9997	83 Outperform	€10.68B	17.58	23.40%	2.84%	6.51%	4.85%
3600	74 Outperform	€5.18B	10.92	17.42%	3.63%	6.87%	18.37%
1358	74 Outperform	€2.12B	13.75	3.76%	7.29%	21.39%	-0.57%
2276	72 Outperform	HK$26.44B	45.76	24.57%	0.62%	13.58%	24.59%
1501	70 Neutral	HK$5.29B	25.57	10.31%	―	14.06%	3.02%
6699	56 Neutral	HK$11.48B	240.00	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Modern Dental Group Limited Corporate Events

Modern Dental Group Achieves Record Financial Performance Amidst Industry Challenges

Modern Dental Group Limited reported record revenues, net profit, and EBITDA for the first half of 2025, driven by multi-dimensional strategies and digitalization in the dental industry. Despite a challenging macro-economic environment, the company increased its revenue by 7.8% to HK$1,834,814,000, with significant growth attributed to organic expansion and the acquisition of Hexa Ceram, Thailand’s largest dental laboratory. The company’s strong financial performance, including a 34.7% increase in net profit, underscores its solid fundamentals and strategic positioning to capitalize on emerging opportunities.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Declares Interim Dividend for 2025

Modern Dental Group Limited has announced an interim ordinary dividend of HKD 0.107 per share for the six months ending June 30, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, with the payment scheduled for October 9, 2025, impacting stakeholders by providing a return on their investment.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Schedules Board Meeting for Interim Results

Modern Dental Group Limited has announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the first half of 2025. The meeting will also consider the declaration or payment of dividends, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.

Modern Dental Group Projects Strong Profit Growth for 1H 2025

Modern Dental Group Limited announced a positive profit alert for the first half of 2025, with expected revenue growth between 4.3% and 8.7%, and a net profit increase between 30.1% and 37.6% compared to the same period in 2024. The growth is attributed to organic expansion, improved operational efficiency through digital solutions, favorable currency movements, and the strategic acquisition of Hexa Ceram, enhancing the company’s market position and financial performance.

The most recent analyst rating on (HK:3600) stock is a Buy with a HK$6.50 price target. To see the full list of analyst forecasts on Modern Dental Group Limited stock, see the HK:3600 Stock Forecast page.